Quote on Morning from Rajesh Palviya, Head of Research, Axis Direct
Below the Quote on Morning from Rajesh Palviya, Head of Research, Axis Direct
The Nifty 50 opened nearly 180 points higher at 23,576.15 but failed to sustain the early gains, reversing sharply to close at 23,118.60, down 279.50 points or 1.19%. The reversal reflects heightened risk aversion as crude oil prices approached $110 a barrel and the US 10-year Treasury yield climbed to around 5%, offsetting early buying in HDFC Bank and technology stocks. IT was a notable exception, with the sector gaining around 2.2%.
Global cues remained challenging, with Wall Street extending its decline overnight. The Dow Jones fell 0.63%, while the Nasdaq declined 0.78%, as the US 10-year yield touched its highest level since 2007 ahead of the Federal Reserve’s policy decision.
Asian markets were mixed and lacked clear direction. Japan’s Nikkei slipped 0.24%, despite stronger export data, while South Korea’s Kospi gained 0.25%. Brent crude remained elevated near $108 a barrel, keeping concerns over India’s import bill, inflation and the rupee’s weakness in focus. GIFT Nifty around 23,222 indicates a cautiously positive start, although global risk factors remain a key overhang.
Technically, the undertone remains fragile. The 23,000 mark is the immediate support, and a decisive break below this level could open the way towards 22,800. On the upside, a sustained move above 23,300–23,350 could provide some relief and push the index towards 23,550. With the Federal Reserve’s rate decision due later tonight, market volatility is likely to remain elevated. A dovish tone could trigger a relief rally, while a continued hawkish stance may keep pressure on equities.
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